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Business news: Omicron dominates, Cyber Monday a let-down

By Jenny McCall

13:25, 29 November 2021

A picture of a researcher with a blood sample of the new variant of the Covid-19 Omicron B.1.1.529 and generic data of covid-19 Coronavirus Mutations. Doctor in analysis lab holding sample of new strain of covid Omicron
The markets are begining to recover from the discovery of a new variant of Covid-19 – Photo: Shutterstock

Key points

Oil prices rebounded today after Friday’s meltdown as investors wait to hear if the Organization of Petroleum Exporting Countries (OPEC) is going to suspend its planned production increase due to the spread of the latest Covid-19 variant.

The new variant, Omicron, has sent markets into a tailspin as investors weigh the risks of the highly mutated strain, and Asia-Pacific markets extended their losses today, as fears of fresh lockdowns and border closures persisted.

The oil tanker shipping company Frontline has revealed a net loss of $33.2m (€29.4m) for the third quarter and described it as a “challenging period” for the industry.

Retailers in the US are expecting to see fewer sales this Cyber Monday as there are fewer deals to be had. US retailers are estimated to generate online sales of up to $11.3bn on Cyber Monday, a decline in growth from a year earlier, according to a report from Reuters.

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Business and economic news

  • Shares in the Scottish soft drinks producer AG Barr rose today after the maker of Irn Bru revealed that full-year profits should be ahead of market expectations.
  • Shares in the online lender Amigo Holdings fell 26.5% on the London Stock Exchange on Monday morning after the company published its latest financial results and warned it will be forced into liquidation unless a new rescue deal is approved.

Markets

Stocks: US stock index futures rose on Monday as investors rushed to take advantage of losses while awaiting more details on the severity of the Omicron coronavirus variant.

Oil: Brent crude oil futures, gained 3.6% to $75.35 per barrel (bbl) on Monday. West Texas Intermediate (WTI) advanced 4.36% to $71.12/bbl.

GBP/JPY

188.95 Price
+0.910% 1D Chg, %
Long position overnight fee 0.0093%
Short position overnight fee -0.0176%
Overnight fee time 21:00 (UTC)
Spread 0.049

USD/JPY

143.41 Price
+0.780% 1D Chg, %
Long position overnight fee 0.0101%
Short position overnight fee -0.0184%
Overnight fee time 21:00 (UTC)
Spread 0.010

AUD/USD

0.67 Price
-0.120% 1D Chg, %
Long position overnight fee -0.0057%
Short position overnight fee -0.0025%
Overnight fee time 21:00 (UTC)
Spread 0.00006

EUR/USD

1.11 Price
-0.220% 1D Chg, %
Long position overnight fee -0.0085%
Short position overnight fee 0.0003%
Overnight fee time 21:00 (UTC)
Spread 0.00006

Gold: Gold prices moved higher on Monday as concerns over the impact of the Omicron coronavirus variant offset a stronger dollar.

Forex: Friday’s shock over the new Covid variant sent markets wild but Monday was much calmer. The dollar strengthened then dipped in early European trading today, the euro fell, and the yen steadied.

Crypto: Bitcoin rebounded today after Friday’s fall. The cryptocurrency rose by 5.3%

What to watch today

In a bid to accelerate its vehicle electrification, Nissan announced it will spend 2trn yen ($17.59bn) over five years to catch up with competitors.

Brazilian airline Azul SA announced today it made an offer earlier this month to combine with Chile’s LATAM Airlines Group (LTM.SN), which is facing bankruptcy, but had reconsidered as a result of an overly high valuation.

Read more: Omicron: UK introduces measures to combat Covid-19 variant

Markets in this article

BAG
A.G.BARR
6.560 USD
-0.17 -2.600%
BAG
A.G.BARR
6.560 USD
-0.17 -2.600%
FRO
Frontline
245.35 USD
-1 -0.410%
FRO
Frontline
245.35 USD
-1 -0.410%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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